Michael J. Fitzpatrick - Page 13

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          Romeyn, and petitioner at the Long Wharf closing.  Petitioner               
          requested that a Jacuzzi be installed in his home along with                
          other alterations, and that Landing send some of its construction           
          workers to do the work.  Landing made $6,087 in payments to fund            
          the renovations.  Petitioner admitted that he never expected that           
          he would have to pay for the repairs.  Accordingly, we find that            
          petitioner should include the amount Landing paid for the                   
          renovations on his home in his 1982 gross income.                           
          2.  Fraud Addition Under Section 6653(b)                                    
               Respondent determined that petitioner was liable for                   
          additions to tax for fraud in each year in issue.  Respondent               
          must prove her determinations of fraud by clear and convincing              
          evidence.  Sec. 7454(a); Rule 142(b); Rowlee v. Commissioner,               
          80 T.C. 1111, 1123 (1983).  Fraud requires a showing that the               
          taxpayer intended to evade a tax known or believed to be owing.             
          Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968).             
          As discussed above, respondent must prove the amount of the                 
          underpayment that is attributable to fraud for purposes of                  
          section 6653(b)(2).  See supra note 1.                                      
               In Fitzpatrick v. Commissioner, supra, the Court decided               
          that petitioner's conviction under section 7201 collaterally                
          estops him from denying that there is an underpayment of his                
          income tax, and that some part of the underpayment is due to                
          fraud for purposes of section 6653(b), for each of the taxable              

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